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The federal government's Bill C-15 (the "Bill") proposes substantial amendments to the Expropriation Act (the "Act") to facilitate the development of a high-speed rail network connecting Ontario and Quebec. The proposed changes seek to expedite federal land acquisition and significantly narrow the procedural rights typically available to landowners. Below is a concise overview of what clients should know.
Elimination of the Requirement to Attempt a Purchase
Under the current Act, the Crown must generally attempt to purchase land before expropriating it. Bill C-15 creates an exception for lands required for the high-speed rail network. If the Minister concludes that an interest in land is needed, the Crown is deemed to require this land for a public work, and the Minister must proceed directly to expropriation without attempting a negotiated purchase. The purpose of this new process is to shorten the early stages of the acquisition process.
Streamlined Notice Requirements
The Bill removes several of the Act's traditional notice obligations, including the detailed requirements in sections 8 and 11. Instead, high-speed rail expropriations would use a simplified form of notice. The notice need only confirm that a notice of intention has been registered, provide the registration details, and identify the municipality or district where the land is located. Any additional information is left to the Minister's discretion. All notices must still inform affected owners of their right to object and describe how objections may be made.
New Approach to Objections — No Public Hearings
The existing objection and public hearing process under sections 9 and 10 of the Act would not apply to rail-related expropriations. Landowners would still have 30 days from publication of the notice to submit a written objection to the Minister, explaining who they are, the grounds for the objection, and their interest in the land. However, the requirement for a public hearing or a hearing officer is entirely removed, significantly reducing procedural safeguards.
Ministerial Obligations When a Notice Is Registered
Despite the streamlined framework, some publication obligations remain in force. When a notice of intention to expropriate is registered, the Minister must distribute it to all individuals identified in the Attorney General's report, publish it in the Canada Gazette, and publish it in a local newspaper or similar publication. If the notice contains an omission or error, a corrected notice may be published and is deemed effective as of the original publication date.
Confirming or Abandoning the Expropriation
After the 30-day objection period, the Minister may either confirm or abandon the intention to expropriate. If an objector requests reasons, the Minister must explain why an objection was not accepted. The Bill also introduces a two-year deadline for confirming intention to expropriate: if the Minister does not confirm the intention within two years of publication, the intention is deemed abandoned. The Minister may also confirm a narrower interest than originally proposed, in which case the remaining interest is deemed abandoned.
Effects on Related Notices
If an expropriation is abandoned, existing notices tied to the property must be withdrawn. A registered notice for right of first refusal must be deleted, and the landowner must be notified. Similarly, if a prohibition on work was registered, the Minister must arrange for its removal and notify the owner and any affected lessees or occupants.
Market Value and Compensation
Bill C-15 also clarifies how compensation is assessed. Any increase in value resulting from work performed in contravention of section 13 cannot be considered when determining market value. This prevents owners from benefiting from unauthorized improvements made after it becomes clear that the expropriation will take place.
What This Means for Landowners and Developers
Bill C-15 represents a significant effort to accelerate federal land acquisition for high-speed rail. The proposed changes would simplify procedural steps and reduce opportunities for landowners to challenge or delay expropriation. For property owners, timely responses to notices will be more important than ever. For developers and infrastructure proponents, the amendments offer a more predictable and efficient pathway for assembling land.
The current draft of Bill C-15 can be accessed here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
